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While in the General Agreement on Tariffs and Trade (GATT) years, generally developed economies pursued preferential trade agreements (PTAs), and the states of the global South were also pursuing PTAs between and among each other. The recently concluded Bangladesh-Bhutan Preferential Trade Agreement (BBPTA) is an addition to this list. This article argues that the seemingly narrow scope of the BBPTA is somewhat deceptive. This is so because it covers products which are actually traded between the parties, and they create a substantial margin of preference. Thus, though the relatively liberal and simple rules of origin of the BBPTA is a cause of comfort for competitors from third parties, for some products they may witness reduced market share. Having said this, due to the opening of their sensitive industries, the two state parties would seem to have committed to market liberalisation. Thus, arguably the less coverage of the PTA could mean more for their trade relationship.

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